“If you don’t have the money management skills yet, using a debit card will ensure you don’t overspend and rack up debt on a credit card – T. Harv Eker”
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Credit cards are widely used nowadays due to the benefits and flexibility it offers. You actually don’t need to carry a lot of cash if you want to make a big-ticket purchase let’s say an expensive car or maybe gadgets from your favorite tech store. With hundreds of companies offering various credit cards in Indian markets, most people get confused in selecting one with the best facilities.
In today’s article we’ll talking about the best credit card companies in India that offers the best deal that too a lowest interest charges so let’s begin
But, before moving on to the credit card companies let us first understand what exactly is a credit card.
“A Credit card is nothing but a little plastic card having a magnetic strip, issued by a bank or business authorizing the holder to buy goods or services on credit. It gives customers a pre-set credit limit which he can use to pay for their purchases without having to pay in cash or issuing a cheque. Instead of giving you the full loan in cash, the bank lets you take as much of the credit limit as you want at a given time. This limit varies from borrower to borrower and is influenced by financial status”
Now to decide which credit card is best for you we’ll look on to different parameters so as to come to a decision.
- Your spending habits and lifestyle
As I mentioned earlier using a credit card is just like you’re borrowing an amount that is needed to be repaid in the next month so if you’re a shopping freak and occasionally spend a lot of money then going for credit cards offering reward points and offers is the best choice for you but on the other hand, if you’re opting for credit cards in case of emergency of funds then go for cards that have the lowest interest charges and annual fees.
There are various types of credit cards that are issued by financial institutions which includes ;
- Travel rewards credit cards, Airline and Hotel credit cards, Flexible rewards Premium credit cards, Cash back credit cards, Balance transfer credit cards, Student credit cards.
In upcoming articles we’ll be discussing about each one of them in a brief manner.
- On boarding Incentives and bonus
In order to attract more customers banks usually offer zero processing charges, joining fees . But keep in mind the more luxury and benefits the card offers the more charges you need to incur.
- Credit limit
The credit limit is nothing but the amount that your banks allow you to withdraw as a loan or this is the amount of money that the credit card issuer is willing to let you borrow. Depending on your credit history and credit score this can vary a lot. But make sure you never over withdraw the prescribed limit since it attracts penalty and can have a bad effect on your credit score.
- Transaction charges and fees
If you are opting for credit card for first time make sure you look for the following charges mentioned below
- Late Payment Fees
- Cash Advance Fees
- Rate of Interest Charged on the Balance Amount
- GST
- Foreign Currency Mark-up Fees
- Cash Withdrawal Charges
- Mobile Alert Charges
- Balance Enquiry Charges
- Duplicate Statement Charges
Make sure you have all the knowledge of all the charges levied so that you are not surprised if you are charged with high fees and interest. After viewing all the offers and charges you must see all the terms and conditions related to those offers.
- Credit cards and Cibil score
If you want to improve your chances of getting loans in the future as that primarily depends upon your credit score you can use credit cards, pay your bills and EMIs that will results in an improvement in your credit score Individuals with a decent CIBIL Score just use the card to increase it.
Conclusion
I’m pretty much sure now you know all the prior information that you need to look at before applying for a credit card. Choose the one according to your lifestyle like if you’re into traveling then traveling credit cards might be the one for you. Though it is not advised to use a credit card frequently since it has bad influence on your credit score but choosing the one with lowest charges, no hidden cost and that offers good discounts and benefits is best for you.
